The disadvantage(s)of extending credit,can be identified as
A)Increased wage cost.
B)Bad debt costs.
C)Delayed receipt of cash.
D)All of the choices are correct.

Question

Quizplus · Accepted Answer

Extending credit can lead to increased wage costs as it requires additional staff members to manage credit accounts, bad debt costs may occur if customers fail to pay back the credit, and delayed receipt of cash can affect a company's cash flow. Therefore, all of the choices are correct in identifying the disadvantages of extending credit.

The Disadvantage(s)of Extending Credit,can Be Identified as